One of the best ways to learn about the Copper Industry is by studying the Top 10 Global Producers.
I read each of the Top 10 #Copper Producer Q2 2023 reports so you don't have to.
Here's a thread on the most important data and themes from the world's largest players ... 🧵
I read each of the Top 10 #Copper Producer Q2 2023 reports so you don't have to.
Here's a thread on the most important data and themes from the world's largest players ... 🧵
1/ Codelco $CODELCO
• Copper Production DOWN 12.6% to 685kt
• Cash Costs UP 42% to $2.13/lb
• Reasons for Product Decline: Weather, lower grades, reduced mineral processing
• Reasons for High Cash Costs: Lower production, higher opex (labor + energy)
• Copper Production DOWN 12.6% to 685kt
• Cash Costs UP 42% to $2.13/lb
• Reasons for Product Decline: Weather, lower grades, reduced mineral processing
• Reasons for High Cash Costs: Lower production, higher opex (labor + energy)
2/ Freeport-McMoran $FCX
• Copper Production DOWN 5% to 1,029Mlbs
• Cash Costs UP 4% to $1.47
• Reasons for Product Decline: Lower grades/production, weather
• Reasons for High Cash Costs: Lower production, increase in operating costs (labor, fuel, etc.)
• Copper Production DOWN 5% to 1,029Mlbs
• Cash Costs UP 4% to $1.47
• Reasons for Product Decline: Lower grades/production, weather
• Reasons for High Cash Costs: Lower production, increase in operating costs (labor, fuel, etc.)
3/ Glencore $GLEN
• Copper Production DOWN 4% to 488Kt
• Cash Costs UP 170% to $1.45
• Reasons for Product Decline: Mine sequences at Collahuasi and Antamina
• Reasons for High Cash Costs: Broad cost inflation, weaker cobalt realizations, weaker hydroxide payabilities
• Copper Production DOWN 4% to 488Kt
• Cash Costs UP 170% to $1.45
• Reasons for Product Decline: Mine sequences at Collahuasi and Antamina
• Reasons for High Cash Costs: Broad cost inflation, weaker cobalt realizations, weaker hydroxide payabilities
4/ BHP $BHP
• Copper Production UP 9% to 1,717Kt
• Cash Costs UP 17% to $1.40
• Reasons for Product Increase: Prominent Hill & Carrapateena ops + Olympic Dam developments
• Reasons for High Cash Costs: Inflationary cost pressures and higher contractor costs
• Copper Production UP 9% to 1,717Kt
• Cash Costs UP 17% to $1.40
• Reasons for Product Increase: Prominent Hill & Carrapateena ops + Olympic Dam developments
• Reasons for High Cash Costs: Inflationary cost pressures and higher contractor costs
5/ Southern Copper $SCCO
• Copper Production UP 9.2% to 227.5Kt
• Cash Costs UP 4% to $1.12
• Reasons for Product Increase: Production at our Cuajone mine was up 22%, higher recoveries overall
• Reasons for High Cash Costs: Higher production costs and lower by-products
• Copper Production UP 9.2% to 227.5Kt
• Cash Costs UP 4% to $1.12
• Reasons for Product Increase: Production at our Cuajone mine was up 22%, higher recoveries overall
• Reasons for High Cash Costs: Higher production costs and lower by-products
6/ Antofagasta $ANTO
• Copper Production UP 10% to 295.5Kt
• Cash Costs UP 4.6% to $2.48
• Reasons for Product Increase: 23.9% increase in throughput at Los Pelambres.
• Reasons for High Cash Costs: higher input costs and the appreciation of the Chilean peso.
• Copper Production UP 10% to 295.5Kt
• Cash Costs UP 4.6% to $2.48
• Reasons for Product Increase: 23.9% increase in throughput at Los Pelambres.
• Reasons for High Cash Costs: higher input costs and the appreciation of the Chilean peso.
7/ First Quantum $FM
• Copper Production UP 35% to 187Kt (QoQ)
• Cash Costs DOWN 13% to $1.96
• Reasons for Product Increase: Higher grades across three largest mines.
• Reasons for Lower Cash Costs: Lower per-unit costs due to higher volumes (from higher grades)
• Copper Production UP 35% to 187Kt (QoQ)
• Cash Costs DOWN 13% to $1.96
• Reasons for Product Increase: Higher grades across three largest mines.
• Reasons for Lower Cash Costs: Lower per-unit costs due to higher volumes (from higher grades)
8/ KGHM Polska $KGH
• Copper Production UP 7% to 351Kt
• Cash Costs UP 35% to $2.95
• Reasons for Product Decline: Lower ore grade and mine transitions
• Reasons for High Cash Costs: higher costs of materials, fuels
and energy, and labour costs
• Copper Production UP 7% to 351Kt
• Cash Costs UP 35% to $2.95
• Reasons for Product Decline: Lower ore grade and mine transitions
• Reasons for High Cash Costs: higher costs of materials, fuels
and energy, and labour costs
9/ Anglo American $AAL
• Copper Production UP 42% to 387Kt (1H 23)
• Cash Costs UP 19% to $1.79 (1H 2023)
• Reasons for Product Increase: Ramp-up in Quellaveco mine to full production
• Reasons for High Cash Costs: Higher input costs including labor, fuel, and contractors
• Copper Production UP 42% to 387Kt (1H 23)
• Cash Costs UP 19% to $1.79 (1H 2023)
• Reasons for Product Increase: Ramp-up in Quellaveco mine to full production
• Reasons for High Cash Costs: Higher input costs including labor, fuel, and contractors
10/ Jiangxi Copper $JIAXF
Jiangxi has not reported Q2 2023 results as of this tweet.
Their latest report dates 04-28-2023.
Jiangxi has not reported Q2 2023 results as of this tweet.
Their latest report dates 04-28-2023.
11/ Recap: Key Takeaways From Top 10 #Copper Producers
There are a few key takeaways from these producers:
• Production is up across the board due to increased grades and mine ramp-ups
• Cost inflation is STILL here and impacting margins
• Odds are slight surplus into 2024
There are a few key takeaways from these producers:
• Production is up across the board due to increased grades and mine ramp-ups
• Cost inflation is STILL here and impacting margins
• Odds are slight surplus into 2024
12/ Conclusion
I hope you enjoyed this thread and learned something new!
Please consider liking, RT, and sharing with friends if you did.
We'll run this back at the end of Q3!
I hope you enjoyed this thread and learned something new!
Please consider liking, RT, and sharing with friends if you did.
We'll run this back at the end of Q3!
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